Investec to break up Evolution - FT

2011-08-05 07:17

Reuters

London - Investec plc [JSE:INP] would move to break up the stockbroking
and wealth management arms of Evolution Group if the South African bank
were successful in its bid for the UK stockbroker, the Financial Times
(FT) said on Friday.

The newspaper, citing people familiar with
the company's thinking, said that Investec, which is also listed in
London, is primarily interested in Evolution's private clients
operations, Williams de Broe.

Investec is keen to merge Williams
de Broe, which reported assets under management of £5.8bn at the end of
December, with its own private clients division, which has assets under
management of £30bn.

The strategy to increase its UK wealth
management exposure would fit with Investec's stated ambition of
building up revenues from non-lending activities, the FT said.

On
Thursday, Investec confirmed it had made a preliminary approach for
Evolution but said that there was no certainty a formal offer would be
made for Evolution's investment banking and wealth management
operations.